To fight a recession, the federal reserve should conduct _____ monetary policy to _____ interest rates, which will shift the aggregate demand curve to the _____.

Respuesta :

To fight a recession, the federal reserve should conduct contractionary monetary policy to raise interest rates, which will shift the aggregate demand curve to the left.
The contractionary monetary policy is a pattern of economic policy used to fight expansion which involves decreasing the money amount in order to increase the cost of borrowing which in turn decreases GDP and dampens inflation.
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